scholarly journals Lexicographic expected utility with a subjective state space

2010 ◽  
Vol 49 (1) ◽  
pp. 175-192 ◽  
Author(s):  
Youichiro Higashi ◽  
Kazuya Hyogo
Keyword(s):  
State Space ◽  
Expected Utility ◽  
Subjective State ◽  
Subjective State Space

scholarly journals Ambiguity and Awareness: A Coherent Multiple Priors Model

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Simon Grant ◽  
Ani Guerdjikova ◽  
John Quiggin
Keyword(s):  
State Space ◽  
Bayesian Updating ◽  
Ordinary Language ◽  
Multiple Priors ◽  
Subjective State ◽  
Subjective State Space ◽  
Representation Result ◽  
Available Information ◽  
Bayesian Prior

AbstractAmbiguity in the ordinary language sense means that available information is open to multiple interpretations. We model this by assuming that individuals are unaware of some possibilities relevant to the outcome of their decisions and that multiple probabilities may arise over an individual’s subjective state space depending on which of these possibilities are realized. We formalize a notion of coherent multiple priors and derive a representation result that with full awareness corresponds to the usual unique (Bayesian) prior but with less than full awareness generates multiple priors. When information is received with no change in awareness, each element of the set of priors is updated in the standard Bayesian fashion (that is, full Bayesian updating). An increase in awareness, however, leads to an expansion of the individual’s subjective state and (in general) a contraction in the set of priors under consideration.

Representing Preferences with a Unique Subjective State Space

Econometrica ◽  
2001 ◽  
Vol 69 (4) ◽  
pp. 891-934 ◽  
Author(s):  
Eddie Dekel ◽  
Barton L. Lipman ◽  
Aldo Rustichini
Keyword(s):  
State Space ◽  
Subjective State ◽  
Subjective State Space

Representing Preferences with a Unique Subjective State Space: A Corrigendum

Econometrica ◽  
2007 ◽  
Vol 75 (2) ◽  
pp. 591-600 ◽  
Author(s):  
Eddie Dekel ◽  
Barton L Lipman ◽  
Aldo Rustichini ◽  
Todd Sarver
Keyword(s):  
State Space ◽  
Subjective State ◽  
Subjective State Space

scholarly journals Two models of unawareness: comparing the object-based and the subjective-state-space approaches

Synthese ◽  
2010 ◽  
Vol 179 (S1) ◽  
pp. 13-34 ◽  
Author(s):  
Oliver J. Board ◽  
Kim-Sau Chung ◽  
Burkhard C. Schipper
Keyword(s):  
State Space ◽  
Subjective State ◽  
Object Based ◽  
Subjective State Space

scholarly journals On the Rejectability of the Subjective Expected Utility Theory

2016 ◽  
Vol 16 (2) ◽  
Author(s):  
Konrad Grabiszewski
Keyword(s):  
State Space ◽  
Expected Utility ◽  
Utility Theory ◽  
Expected Utility Theory ◽  
Subjective Expected Utility ◽  
Subjective Expected Utility Theory ◽  
Robustness Check

AbstractState space, a key element of the Subjective Expected Utility (SEU) theory, is not observable. This implies that, in order to test the SEU theory, it is necessary to assume some state space. Consequently, if the SEU theory is rejected, then it is appropriate to conduct a robustness check; that is, to search for a different state space and a probability over that state space which together do not lead to the rejection of the SEU theory. To find such state space and probability means to SEU-rationalize the agent’s behavior. I show how to conduct the process of SEU-rationalization and determine when an SEU-rationalization is possible.

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